Compute the bc merchandising gross margin for the year

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Question - BC Ltd. Has collected the following data and asks you to prepare the Income statement:

Cost of Merchandise Sold $55,040

Machine Depreciation Expense $8,000

Income Tax Expense $6,032

Bank fees Expense $1,300

Insurance Expense $1,000

Utilities Expense $500

Gain from asset disposition $7,000

Sales Commisions Expense $20,000

Sales Revenue $100,000

Required -

1. Compute the BC's net income for the year?

2. Compute the BC's merchandising gross margin for the year?

Reference no: EM133185078

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